Vocabulary

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Pension

/pen-shun/

"Retire pay."

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Demographic

/dem-uh-graf-ik/

"Pop stats."

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Solvency

/sol-ven-see/

"Having money."

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Compound interest

/kom-pound in-trest/

"Interest on interest."

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Retiree

/ri-ty-ree/

"Old worker."

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Longevity

/lon-jev-i-tee/

"Long life."

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Contribution

/kon-tri-byoo-shun/

"Payment in."

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Sustain

/suh-stayn/

"Keep going."

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Crisis

/kry-sis/

"Emergency."

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Nest egg

/nest eg/

"Savings."

Article

The Silver Tsunami 👵

Populations are aging. People are living longer but having fewer babies. This breaks the 'Pension Model'. In the past, 5 workers supported 1 retiree. Soon, it may be 2 to 1.

Defined Benefit (Pension): Company pays you for life. (Rare now).
Defined Contribution (401k): You save your own money. Market risk is yours.

Governments are raising the retirement age (sparking protests in France). The message is clear: You are on your own. 'Compound Interest' is your only friend—start saving early.

Practice

Progress: 0/10

Score: 0

1.

Why is the pension model breaking?

2.

Compound Interest is...

3.

Retirement age is...

4.

Defined Contribution means...

5.

Silver Tsunami refers to...

6.

Solvency means...

7.

Longevity means...

8.

Nest egg is...

9.

Demographics study...

10.